Correct calculation of increase in WML/CAO?

Questioner

The agreement in principle of the collective labor agreement for petrol stations and car wash companies states that on January 1, 2024, the actual salaries and salary tables will be structurally increased by € 185 gross per month. On December 31, 2023, an employee's salary is €2,079 gross per month, which will be below the statutory minimum wage of €2,202 (minimum wage 2024 according to the example in the agreement in principle) gross per month on January 1, but will that be the actual salary on January 1, 2024? According to the new collective labor agreement scale in that agreement, the salary in her scale would be increased to €2,264, there is nothing wrong with that and therefore fine for employees who enter service on or after January 1. Now the question is what is correct in this case. As of January 1, 2024, the old actual salary is €2,079. If the employer were to give the €185 collective labor agreement increase on this, we would arrive at €2,264 per month. In my opinion, this would not be correct as the actual salary of €2,079 on January 1, 2024 falls below the applicable statutory minimum wage. I believe that the labor law states that the actual wage of an employee must always be at least equal to the statutory minimum wage. And the employer cannot therefore apply a collective labor agreement increase to a wage that does not meet the statutory minimum wage. The statutory minimum wage is a mandatory rule that takes precedence over other provisions, including those in a collective labor agreement. Is it correct that the employer must first increase the salary because it may never be less than the statutory minimum, so that the salary on 1 January 2024 must first amount to €2,202 gross per month, i.e. the statutory minimum wage, and then apply the collective labour agreement increase of €185 because in this case the law takes precedence over the collective labour agreement? As a result, the salary from 1 January 2024 must amount to €2,387 gross per month. What is correct in this case? €2,264, according to the new collective labor agreement scale, or according to my calculation €2,387? (Actual salary + WML correction + collective labor agreement increase = €2,387 gross per month.)

Lawyer

In the Netherlands, it is indeed the rule that the statutory minimum wage (WML) is always the lower regulatory mechanism for the remuneration of employees. So if a wage, including the conventional wage increase, is below the minimum wage, then the wage should indeed first be adjusted to meet the minimum wage. In your standard, this would mean that the current salary of €2,079 gross per month would first have to be adjusted to the statutory minimum wage of €2,202 as of January 2024. The conventional salary increase of €185 would then be applied to this adjusted salary, resulting in a final salary of €2,387 per month. In order to fully understand and verify your specific situation and employment conditions, it would be wise to double-check this with a lawyer or attorney, who can give you tailored advice. Before this consultation, it would be useful to have the specific text of the CAO and the principle agreement at hand. But from a general legal perspective, your interpretation and calculation seem correct.' ---------------- Stichting Rechtswinkel.nl is a national organization with students and volunteers. The above advice is based on limited information and may be incomplete or even incorrect for your situation. Always consult a lawyer or attorney for your further steps. Read disclaimer: https://rechtswinkel.nl/disclaimer I would like to invite you to rate the above answer so that we can learn from your response.